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Opinion Contributor

Wanxiang-A123 battery deal benefits U.S.

Manufacture of lithium ion batteries is a widely available technology, the author writes. | AP Photo

Some members of Congress and private interest groups have opposed the sale to Wanxiang. At the request of Wanxiang, I have reviewed the case and strongly believe that the sale should go forward, subject to completion of CFIUS review. There are many sensitive technologies that the United States should protect. The manufacture of lithium ion batteries is not one of them. It is a widely available technology; the machines in the A123 factory in Michigan are from South Korea and Japan. Wanxiang is a family-owned business — unlike many state-owned enterprises in China, it is not controlled by the Chinese government. It has operated a U.S. business since 1994 out of headquarters in Illinois employing more than 3,500 Americans in this country and has reinvested every penny that it has made in the United States into its U.S. operations. The company has already saved more than 3,000 American jobs during the recession by buying distressed factories. This is the type of foreign investor that we should want — a company with a commitment to invest in and sustain jobs in the United States.

The Wanxiang/A123 deal will provide a needed lifeline to a struggling American company and its employees, saving thousands of employees’ jobs and the facilities in which they work, and allow them to continue American innovation in an industry dominated by Japanese and South Korean conglomerates. The terms of the agreement also wisely solve the government’s national security concerns about the transaction: Wanxiang excluded A123’s U.S. government contracts and the assets from its purchase agreement, and those assets are being separately sold to a trusted U.S. company, Navitas Systems.

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The relationship between the United States and China will have elements of both competition and cooperation in the future. We need to establish and enforce clear guidelines that establish limits on Chinese activities when they are to our detriment and that encourage cooperation to our mutual benefit. The Wanxiang/A123 deal is a win-win transaction that poses no danger and provides immediate benefits for Americans.

Dennis Blair is the former director of national intelligence and a retired Navy admiral. His last military post was commander in chief, United States Pacific Command, the highest-ranking officer in the Asia-Pacific region.

Readers' Comments (5)

The article is advertising. The battery is the bussiness of next 10 years. Chinese company knows it and that is why this company paid 2 times higher price than Johnson Controls. Behind of it is strategic decision of Chinese government. And what about US authorities ? They sell it. If this investment is good for Chinese why is not for American ? US authorities doesn't think strategically, they numerates losses a tries to make quick patch. A123 company had have all master card in its hands. Only thing that hadn't have was operating money. The right solution is long term loan from US authorities as investment to the future. Battery bussiness will increase dramaticaly in next years. This is a look from perspective next 10 years. Unfortunately the future winner will be Chinese not American. And from this perspective this deal is not win-win transaction.

The article is advertising. The battery is the bussiness of next 10 years. Chinese company knows it and that is why this company paid 2 times higher price than Johnson Controls. Behind of it is strategic decision of Chinese government. And what about US authorities ? They sell it. If this investment is good for Chinese why is not for American ? US authorities doesn't think strategically, they numerates losses a tries to make quick patch. A123 company had have all master card in its hands. Only thing that hadn't have was operating money. The right solution is long term loan from US authorities as investment to the future. This is a look from perspective next 10 years. Battery bussiness will increase dramatically in next years. Unfortunately the future winner will be Chinese not American. And from this perspective this deal is not win-win transaction.

I know it, but $400 million invested to the future technology is vaporized. Your look is numeration of losses. Each investment starts with losses, but the future will carry back money. US tax payers payed costs, Chines tax payers will get money. That's true.